Setu.Technology

Free Tool — Payment Terms Calculator

Payment Terms Calculator

Turn terms like "2/10 net 30" into real dates and rupees — due date, early-payment savings, and what skipping the discount actually costs.

Payment due date

6 Sept 2026

Pay early by

17 Aug 2026

Early payment saves

₹2,000.00

Cost of skipping discount

37.2% / yr

A "2/10 net 30" term means a 2% discount if paid within 10 days, otherwise the full amount is due in 30 days. The annualized cost shows what skipping that discount effectively costs as an interest rate — often far more than a working-capital loan.

Decode invoice terms in seconds

Terms like "net 30" or "2/10 net 45" pack a due date, a discount and an implicit interest rate into a few characters. This calculator unpacks them: the exact calendar due date from the invoice date, the discount amount if you pay within the window, and the annualized cost of choosing not to.

That last number surprises people. Skipping a 2% discount to hold cash for 20 extra days is equivalent to borrowing at over 36% per year — far more expensive than most working-capital finance. Knowing that lets you decide with numbers, whether you're the buyer or the seller setting terms.

Payment terms FAQs

Pay within 10 days and take a 2% discount off the invoice; otherwise the full amount is due in 30 days from the invoice date.

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